TKO Group Holdings, Inc. (TKO)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 525,556 | 457,410 | 277,532 | 245,812 | 235,839 | 188,600 | 172,822 | 136,086 | 180,574 | 181,688 | 110,126 | 105,594 | 134,828 |
| Short-term investments | US$ in thousands | -44 | — | — | — | — | — | 206,054 | 267,693 | 258,487 | 259,305 | 333,386 | 342,219 | 280,957 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 670,657 | 763,433 | 753,188 | 590,491 | 472,140 | 399,500 | 225,532 | 209,731 | 230,179 | 448,969 | 425,204 | 426,847 | 415,817 |
| Quick ratio | 0.78 | 0.60 | 0.37 | 0.42 | 0.50 | 0.47 | 1.68 | 1.93 | 1.91 | 0.98 | 1.04 | 1.05 | 1.00 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($525,556K
+ $-44K
+ $—K)
÷ $670,657K
= 0.78
TKO Group Holdings, Inc.'s quick ratio has exhibited some fluctuations over the analyzed periods. The quick ratio, which measures a company's ability to meet its short-term liabilities with its most liquid assets, stood at 1.00 on December 31, 2021. It showed a slight improvement in subsequent quarters, reaching 1.05 on March 31, 2022, and 1.04 on June 30, 2022. However, by September 30, 2022, the quick ratio decreased to 0.98, indicating a potential liquidity strain.
The trend then reversed positively, with the quick ratio witnessing a significant upsurge to 1.91 on December 31, 2022, and further improving to 1.93 on March 31, 2023. However, the ratio started to decline in the following quarters, dropping to 1.68 on June 30, 2023, and decreasing significantly to 0.47 on September 30, 2023. This sharp decline may raise concerns about the company's liquidity position.
The quick ratio continued its downward trajectory, reaching 0.50 on December 31, 2023, and falling further to 0.42 on March 31, 2024, indicating a potential liquidity crisis. The ratio slightly rebounded to 0.60 on June 30, 2024, and improved to 0.78 by December 31, 2024. Overall, the trend of the quick ratio reflects periods of both strength and weakness in TKO Group Holdings, Inc.'s short-term liquidity position, signaling the necessity for a careful assessment of its working capital management.
Peer comparison
Dec 31, 2024